Rating factors that could lead to a positive outlook or rating upgrades would be the continuation of Validus Re’s long-term, consistently strong operating profitability relative to its peer group and maintaining strong risk-adjusted capital levels. The rating factors that could lead to a negative outlook or rating downgrades include outsized catastrophe or investment losses relative to the organization’s peer group, unfavorable operating profitability trends and a significant decline in risk-adjusted capital that would not be supportive of the current rating level.The following debt rating has been affirmed: Validus Holdings, Ltd.— -- “bbb” on $250 million 8.875% senior unsecured notes, due January 2040 The following indicative ratings for securities available under the shelf registration have been affirmed: Validus Holdings, Ltd.— -- “bbb” on senior unsecured debt -- “bbb-” on subordinated debt -- “bb+” on preferred stock The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding Universal BCAR”; “Catastrophe Analysis in A.M. Best Ratings”; “Insurance Holding Company and Debt Ratings”; and “Rating Members of Insurance Groups.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.